23 C
Kenya
Monday, September 21, 2020

Ndindi Nyoro: Why people in business, employment say ‘hakuna pesa’

Must Read

James Mugambi, the man who sold Sh. 1.8 billion business to Equity Bank

The 2008 acquisition of a Uganda-based micro-lender by Equity Bank was a dream come true for serial entrepreneur James...

I lost Sh. 20 million to an arson attack, today I’m back on my feet again

Sarah Karingi is the chief executive officer of Sarma Enterprises Limited, a company that is involved in the supply...

How I built Zetech from a hostel to multi-million university at only age 22

His youthful face defies his millionaire status. In fact, you’ll hardly tell him out from a crowd. But here...

Today is one of the many times when we complain that “hakuna pesa”. But really, what is money? How is velocity of money more important than the amount?

Let me illustrate with an example: Picture this; Mr. Kamau is the developer and the owner of a number rental houses. He however owes the Mr. Butchery Owner Ksh. 2,000. In turn, Mr. Butchery Guy owes Mr. Otieno Ksh. 2,000 for some repairs that he did at his business premises. Mr. Otieno then owes a shopkeeper who is located in Mr Kamau’s flats Ksh. 2,000.

Top Churchill comedian reveals struggle with depression, suicide attempts

One day, Mr Kamau got a Mr. Mzungu whom he asks to pay a deposit of Ksh. 2,000  as a ‘viewing fee’ to view his houses in order to make a decision on whether to rent one unit or not. Mr. Mzungu hands over the Ksh. 2,000 to Mr Kamau. Mr. Kamau then immediately rushes to Mr. Butchery Guy to clear his 2,000 debt. Once he pays his debt, Mr. Butchery Guy deposits the Ksh. 2,000 in his M-Pesa account and sends it to Mr. Otieno. In turn, Mr. Otieno immediately forwards this money to the shopkeeper as payments for the commodities he had borrowed. The shopkeeper is relieved to finally get paid. He then hands over the Ksh. 2,000 to Mr. Kamau who is his Landlord to clear his pending rent arrears.

Kenyan who was accused of hacking, stealing Sh. 4 billion from KRA

After some few Minutes, Mr. Mzungu comes over to Mr. Kamau. He reports that he did not like the rental houses and asks Mr. Kamau to refund the Ksh. Sh. 2,000 viewing fee they had agreed on. Mr. Kamau gives him back his Ksh. 2,000.

Effectively, that chain leaves everyone debt free. That’s how the economy gets chocked when a few barbarians hoard money especially money that is derived from corruption under the mattress. Velocity of Money.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

188,070FansLike
11,005FollowersFollow
187FollowersFollow
291SubscribersSubscribe
WhatsApp
Telegram

Latest News

Sick Nyandarua man dies on wheelbarrow as poor roads persist

Nyandarua Roads: It was shame and shock after a man from Nyandarua who could not access a health centre...

Nehemiah Odhiambo: How I became best soybean farmer in East Africa

Soybean Farming in Kenya: Weaving through the sugarcane plantations gives one a feeling of sweetness that Migori County holds. We see plantation after plantation of cane...

Evelyne Oyagi: I defied young age to build a successful business

Events Business Kenya: Entrepreneurship and business passion is often associated with age and experience. In fact, the biggest number of entrepreneurs running successful businesses...

Career profile of celebrated Kenyan pilot Captain Irene Koki Mutungi

Kenya Airways Captain Irene Koki Mutungi , popularly known as Koki Mutungi , is a professional pilot in Kenya. She was the first female on...

More Articles Like This